Western brands under pressure as 'pre-owned' luxury booms in China

Shanghai: As China's economy languishes in post-pandemic recovery, global fashion giants face dwindling demand from consumers flocking to the burgeoning second-hand market and local alternatives. Once the primary purchasers of luxury Western brands, Chinese shoppers now represent a shrinking slice of worldwide spending, with luxury firms like LVMH and Hermes losing billions.

Louis Vuitton and Galeries Lafayette have shuttered a combined five stores in mainland China in recent years, reflecting the changing tides of consumer behavior. In a central Shanghai warehouse-style store, shoppers now compare who could secure the best deal rather than who splurged the most. Despite a 19% slump in luxury personal market spending in 2024, China's second-hand luxury market saw a 15-20% surge in 2025, reaching an estimated 38.4 billion yuan in sales, with projections of surpassing 100 billion yuan by 2030.

Super Zhuanzhuan, a new Shanghai store, requires patrons to wear black gloves to prevent greasy fingertips from damaging the items. Formerly idolized, the Louis Vuitton monogram now appears dated to Gen Z consumers who prefer trendy Korean brands. Luxury brands must adapt to a rapidly evolving retail landscape, where digital/social media influence and cultural nuances significantly impact consumer perceptions. Foreign brands must invest in relevance to survive the shifting tides of Chinese luxury retail.